Mining for carbon credits

From the outside, the Borynia mine in southern Poland doesn't look like the home of green technology.

But this coal mine is the first in the country to use a system which converts excess methane, a by-product of coal mining, into heating fuel and electricity.

The mine's engineer explains how the one-and-a-half million euro system works:

SOUNDBITE: Stefan Lach, Borynia Chief Engineer, saying (Polish):

"We use the methane taken from the mine during coal excavation; the primary effect of this is the reduction of greenhouse gas emissions. In addition, we produce our own electricity and heat, which are used by the mine."

This earns the mine carbon dioxide credits. And under worldwide emissions trading, the mine can sell its credits to a Japanese power company, which brings in extra income:

SOUNDBITE: Krzysztof Stanczyk, Mining Institute Engineer, saying (Polish):

"Every ton of methane is worth twenty one tons of CO2. This is very profitable for us because it means that the price per ton of emissions credits with methane is twenty one times higher than that of CO2."

This system has both environmental and financial benefits.

Before, some of the excess methane was burned, generating up to 50 tons of pollution per year.

Poland's power producers account for most of its carbon dioxide emissions.

And as the European Union forces Poland to cut emissions by almost 30 percent in the next four years - power companies have been threatening price increases of up to 100 percent.

By selling its emissions credits, Borynia mine might not reduce energy costs for Polish consumers.

But systems like this could play an important role in reducing emissions as Europe fights global warming.

Joanna Partridge, Reuters